You Should Charge More - - Design/Development Services Pricing

Lisa Sabin-Wilson, Owner WebDevStudios and AppPresser, Author
As freelancers and entrepreneurs, we are in charge of assigning value to the work that we do. In 2004, as a freelancer, Lisa sold her first WordPress project for $75. Ten years later, as a partner in a thriving web design and development agency, she is frequently involved in projects 1000 times that much, often more.

There are different considerations in pricing as a freelancer, and pricing as an agency. Lisa explores these considerations and shares her insight into common mistakes she made in her career as a freelancer, as well as pricing lessons, strategies and advice she is using today.

This session will explore different pricing models, help you identify signs that your rates might be too low and some similarities and differences between freelancing vs. agency pricing strategies. You'll find out how she gradually increased her pricing as a freelancer because one of her (paying) clients encouraged her to do so, and you should be prepared for Lisa to encourage you to do the same!

Transcript

1. You Should Charge MORE!
   Lisa Sabin-Wilson
   Prestige Conference - October 2014 | Minneapolis, MN
   

   View Slide

2. 2
   You Should Charge More!
   Prestige Conference - October 2014 | Minneapolis, MN
   !
   LISA SABIN-WILSON
   Partner, Chief Operating Officer - WebDevStudios
   Co-Founder, AppPresser
   Author: WordPress For Dummies
   !
   @LisaSabinWilson | @WebDevStudios
   

   View Slide

3. View Slide

4. $75.00
   

   View Slide

5. 3 Days.
   

   View Slide

6. $25 / day
   

   View Slide

7. " #
   $
   %
   DISCOVERY
   CONTENT 

   MIGRATION
   DEVELOPMENT DESIGN
   

   View Slide

8. 8
   RECOGNIZE YOUR VALUE
   We like you, we REALLY like you!
   &
   ' (
   )
   *
   I didn’t know how to judge
   my own value. I downplayed
   my own talents. My pricing
   reflected that.
   High end clients that you
   may be seeking WILL judge
   you harshly if you are
   pricing yourself too low.
   Experiment! Raise the price
   on your next project by a
   couple hundred … or even a
   couple thousand. You may be
   surprised!
   In the end - always be
   prepared to demonstrate
   your value in EVERY
   PROJECT you do.
   YOUR VALUE
   IT’S NOT EASY TO GAGUE
   YOUR OWN TALENT AND
   VALUE AS A FREELANCER.

   

   GO WITH YOUR GUT.
   

   View Slide

9. 9
   HOURLY MODEL
   Time is money, ya’ll!
   &
   How much time does it take to complete this
   project?
   Calculate hours per task
   Assign an hourly fee to each task.
   1
   2
   3
   + simple calculation of taking an hourly rate (say, $10/hour) and multiplying that by the estimated number of hours
   the job will take (say, 100 hours). So, in this case, the business will bid $1,000 ($10/hour for 100 hours)
   

   View Slide

10. 10
    FIXED PRICING MODEL
    One cost to rule them all!!
    &
    Budget is fixed for services.
    Viable model for projects with well defined
    requirements.
    Provides little flexibility on project
    requirements.
    1
    2
    3
    + Engagement lasts for a pre-defined period of time and any changes to the project requirements would require re-
    negotiation and change orders with additional contracting and billing.
    

    View Slide

11. 11
    TIME AND MATERIALS MODEL
    One cost to rule them all!!
    &
    Used when the scope and requirements for a
    project are not fully defined at the outset.
    Provides the flexibility of varying the size and
    workloads of the development team assigned to your
    project, while optimizing time and costs
    Provide skilled resources and the development effort is billed
    at the end of every month based on the pre-negotiated and a
    mutually agreed hourly rate
    1
    2
    3
    + This engagement can go from a few months to several years.
    

    View Slide

12. 12
    VALUE BASED PRICING
    What is the value of engagement?
    &
    How much money are we saving the client? 

    How much revenue might the client realize
    from our services?
    To what extent is our experience essential?

    How much would our problem solving mean to
    this client?
    How hungry are we at the moment?

    More hungry = less fees
    Less hungry = higher fees
    1
    2
    3
    + How much extra - beyond hours and tasks - is this job really worth?
    

    View Slide

13. 13
    MANY PHASES OF PROJECTS
    Is your cost accounting for all of them?
    ,
    -
    DEVELOP
    .
    MIGRATION
    /
    RESEARCH
    !
    0
    DESIGN
    API Integrations. Project Management.
    Data Mapping. Copywriting. MORE!
    

    View Slide

14. 14
    DISCOVERY PROCESS
    Do you charge for it? Is it a separate line item?
    1
    Discovery.
    Design.
    !
    Data Mapping.
    !
    Required features.
    

    View Slide

15. 15
    PROJECT MANAGEMENT
    Do you charge for it? Is it a separate line item?
    1
    Weekly phone updates.
    Managing teams.
    Managing clients.
    Project Management one of
    the largest time investments
    for any size project.
    !
    Managing staff and clients
    takes time - are you
    accounting for it?
    

    View Slide

16. 16
    RESPONSIVE DESIGN
    Do you charge for it? Is it a separate line item?
    1
    Your site will

    work on all mobile

    and tablet devices!
    Some feel that responsive
    design is a feature that is
    EXPECTED.
    !
    Others feel that responsive
    design is a feature that adds
    VALUE.
    

    View Slide

17. 17
    BUMP UP THOSE PRICES!
    You know you should increase your prices when…..
    !
    WHEN YOUR CLIENT TELLS YOU TO
    When you have a PAYING client telling
    you to increase your pricing - DO IT!
    they see your value!
    Even if you don’t!
    !
    !
    !
    !
    2
    SIGNS YOU
    NEED TO
    INCREASE
    YOUR
    PRICING
    

    View Slide

18. 18
    BUMP UP THOSE PRICES!
    You know you should increase your prices when…..
    !
    WHEN YOU HAVE MORE WORK THAN 

    YOU CAN HANDLE
    You are definitely doing_it_right();
    clients recognize your talent!
    Even when you don’t!
    !
    !
    !
    !
    2
    SIGNS YOU
    NEED TO
    INCREASE
    YOUR
    PRICING
    

    View Slide

19. 19
    BUMP UP THOSE PRICES!
    You know you should increase your prices when…..
    !
    WHEN YOU ARE TURNING DOWN MORE WORK

    THAN YOU ARE TAKING ON.
    You are in demand - capitalize on this!
    they REALLY like you!
    Even if you doubt it!
    !
    !
    !
    !
    2
    SIGNS YOU
    NEED TO
    INCREASE
    YOUR
    PRICING
    

    View Slide

20. YOU CAN DO IT!
    Lisa Sabin-Wilson
    Prestige Conference - October 2014 | Minneapolis, MN
    

    View Slide

21. THANK YOU!
    Lisa Sabin-Wilson
    Prestige Conference - October 2014 | Minneapolis, MN
    

    View Slide